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Fintech News ME
09-07-2025
- Business
- Fintech News ME
Abu Dhabi Securities Exchange, HSBC, FAB Begin Pricing for MENA's First Blockchain Bond
The Abu Dhabi Securities Exchange (ADX) has initiated the pricing stage for what will be the region's first bond issued using distributed ledger technology (DLT). The bond, issued by First Abu Dhabi Bank (FAB) via HSBC Orion, a digital assets platform operated by Hong Kong's Central Moneymarkets Unit (CMU), marks a notable development in ADX's efforts to support financial innovation and the UAE's digital economy agenda. The listing is the result of a collaboration between ADX, FAB, and HSBC, combining regional financial institutions with international digital issuance expertise. The structure of the bond has been supported by major international law firms to ensure compliance with global governance standards. Institutional investors will be able to access the digital bond through accounts held with CMU, Euroclear, or Clearstream. Participation is available either as a direct HSBC Orion participant or through custodians connected to these platforms. Digital bonds, or fixed-income instruments recorded on blockchain, are intended to enhance efficiency, shorten settlement cycles, reduce counterparty risks, and improve transparency and security. Their introduction on ADX is part of a broader strategy to diversify financial offerings and integrate tokenised finance into the capital markets. HSBC acted as the sole global coordinator, lead manager, and bookrunner for the transaction, playing a key role in bringing blockchain-based issuance to the region. Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, stated: 'The successful issuance of MENA's first blockchain-based digital bond, in close collaboration with FAB and HSBC, marks a defining moment in our journey to transform capital markets through innovation. ADX was central in facilitating this milestone, ensuring the bond's seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.' Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, said: 'The successful launch of MENA's first digital bond on ADX using HSBC Orion shows how we are transforming the promise of tokenisation into reality for our region. By combining our global experience with trusted local partners, ADX and FAB, we're helping bolster the region's capital markets, making them more transparent, efficient and accessible to investors.' Designed to be compatible with global settlement infrastructure, the bond aims to bridge traditional financial markets with digital issuance models, supporting broader institutional access to digital securities.
Arabian Post
06-07-2025
- Business
- Arabian Post
ADX Ushers in MENA's First Blockchain‑Powered Bond
Abu Dhabi Securities Exchange has opened the pricing stage for the first blockchain-based digital bond in the Middle East and North Africa, issued by First Abu Dhabi Bank and powered by HSBC Orion, marking a significant leap in regional capital market innovation. Global investors will be able to participate through accounts at the Central Moneymarkets Unit in Hong Kong, Euroclear, Clearstream or via HSBC Orion, either directly or through existing custodians. The bond is structured to blend digital issuance with conventional post-trade systems, enhancing settlement efficiency while ensuring compatibility with international clearing and custody frameworks. ADX's Group CEO, Abdulla Salem Alnuaimi, described this as a defining moment in transforming capital markets through innovation, with the exchange facilitating integration of the bond into existing infrastructure and aligning it to global settlement standards. He added that the initiative paves the way for tokenised future assets such as green bonds, sukuk and real estate-linked instruments. ADVERTISEMENT FAB Group CFO Lars Kramer said the issuance establishes new benchmarks in transparency, security and efficiency, aligning with the UAE's progressive regulatory approach. He highlighted it as a vital step in FAB's innovation agenda and the development of a resilient digital capital market ecosystem. HSBC served as sole global coordinator, lead manager and bookrunner, utilising its Orion digital assets platform operated via Hong Kong's CMU. Mohamed Al Marzooqi, CEO UAE at HSBC Bank Middle East, emphasised the move as a realisation of tokenisation potential in the region, achieved through collaboration with ADX and FAB. The bond's pricing specifics—such as tenor, coupon and volume—have not been fully detailed publicly. However, analysts suggest it could be comparable with other tokenised debt instruments, such as those priced at SOFR+70 basis points with three-year maturity, reflecting institutional investor demand and digital bond issuance trends. This move follows earlier digital bond initiatives through HSBC Orion, including sovereign and supranational issuances. Such instruments highlight the platform's standing in enabling digital debt markets. The integration with CMU fortifies access to established global wholesale infrastructure by tying into Euroclear and Clearstream linkages. This strategic development positions Abu Dhabi as a regional leader in tokenised finance and digital capital markets. ADX aims to broaden its fixed-income offerings beyond traditional debt, offering investors digital bonds with advantages such as faster settlement times, reduced counterparty risk, enhanced transparency, and improved operational efficiency. FAB itself is active in blockchain ecosystems, exploring stablecoins and digital RMB. It plans to issue a Dirham stablecoin and participates in cross-border CBDC initiatives through platforms like mBridge, involving central banks of China, Hong Kong, Saudi Arabia, Thailand and the UAE. As the bond advances beyond pricing to final issuance, stakeholders will monitor investor appetite, compliance alignment and the degree of infrastructure uptake. The success of this transaction could set a template for future digital issuance in the region, reinforcing Abu Dhabi's vision of a diversified, tech‑driven capital market. Monitoring the transition from pricing to distribution and eventual listing on ADX will be critical. Observers will also assess whether digital issuance can tangibly reduce settlement durations, operational overheads and counterparty risk—fundamental value propositions of tokenised finance.
Arabian Post
04-07-2025
- Business
- Arabian Post
Digital Bond Breakthrough Sets Abu Dhabi Exchange Apart
The Abu Dhabi Securities Exchange has initiated the pricing phase for the MENA region's first bond underpinned by distributed ledger technology, marking a new era in regional capital markets. The fixed-income instrument, issued by First Abu Dhabi Bank via HSBC Orion, is set to be listed on ADX, promising enhanced operational efficiency, transparency and market access. ADX, the UAE's largest exchange and the second-largest in the Middle East and North Africa, is leading the effort to integrate tokenised financial instruments into its core infrastructure. The digital bond follows strategic collaboration among ADX, FAB and HSBC, combining regional reach with global digital issuance acumen. HSBC Orion, which powers the issuance, is operated by the Central Moneymarkets Unit based in Hong Kong. This platform supports settlement via links to Clearstream and Euroclear, allowing both traditional custody participants and direct digital‐platform users to access the bond. Legal structuring has involved top-tier international firms to ensure regulatory compliance and governance integrity. ADVERTISEMENT Abdulla Salem Alnuaimi, ADX Group chief executive officer, hailed the development as a critical milestone in embedding blockchain solutions into capital markets and supporting Abu Dhabi's digital transition. He emphasised that this issuance paves the way for tokenised green bonds, sukuk and real estate-linked assets. FAB Group CFO Lars Kramer highlighted the instrument's transformative potential, noting it advances the bank's digital strategy and provides investors with streamlined execution and settlement. He indicated that FAB is cementing its role as a pioneer in the region's digital asset ecosystem. Supporting voices from HSBC echoed the sentiment. Mohamed Al Marzooqi, CEO of HSBC Bank Middle East, said the step demonstrates how tokenisation can reshape capital markets in the Middle East, enhancing transparency, efficiency and investor access. HSBC will act as global coordinator, lead manager and bookrunner, underscoring its comprehensive involvement. Digital bonds, issued and recorded on blockchain, are designed to offer faster settlement cycles, reduced counterparty risk and improved security and transparency for institutional investors. ADX officials have emphasised that the exchange's post-trade systems are fully equipped to integrate with global settlement standards, ensuring interoperability and institutional confidence. HSBC Orion has quickly emerged as a prolific platform globally, having issued several digital bonds in the past year, including a Luxembourg treasury note and a €100 million bond by the European Investment Bank settled using CBDC. The FAB issuance leverages the platform's Hong Kong-based CMU operations, benefiting from its connections to Clearstream and Euroclear. FAB's digital ambitions extend beyond debt issuance. The bank is developing a Dirham stablecoin, has embraced China's digital RMB and is active in the mBridge cross-border CBDC initiative alongside central banks in China, Hong Kong, Saudi Arabia, Thailand and the UAE. These efforts underscore FAB's leadership in exploring blockchain applications across payments and capital markets. Market observers see ADX's move as aligning with the UAE's ambition to diversify its economy and enhance its position as a technologically advanced financial hub. Integrating DLT-based bonds into mainstream markets supports national objectives of transparency, resilience and growth. Institutional investors are expected to benefit from digital bonds through shorter settlement windows and simplified processes. Tokenisation can reduce manual reconciliation, lower operational cost, and establish immutable transaction records. Such innovations are gaining traction: ADX's listing follows a wave of global tokenised issuance, including recent bond sales via HSBC Orion. Looking ahead, the ADX platform lies poised to host a wider array of tokenised assets. ADX has flagged plans for green bonds, sukuk, and securitised property instruments — potentially transforming regional capital markets into a hybrid of traditional and blockchain-enabled finance. Global investors, whether viewing through conventional custodian channels or digital wallets, will have access to the bond via CMU, Euroclear, or Clearstream. Direct connection to HSBC Orion is also an option, ensuring flexibility in participation models. This dual-access framework is designed to attract both legacy institutional investors and early adopters of blockchain finance.
